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NewEconomicThinking
NewEconomicThinking·August 23, 2020

Economic Disparity and Political Transformation: How Greenwich Republicans Embraced Trump

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Summary

This podcast episode features Evan Osnos, a staff writer at The New Yorker, discussing his article on the political transformation of Greenwich, Connecticut, from a bastion of "noblesse oblige" Republicanism to a region that embraced Donald Trump. The conversation, set against the backdrop of the 2020 pandemic, explores how the crisis has peeled away societal coverings, revealing deep vulnerabilities and inequalities. Osnos and host Rob Johnson reflect on the shift from an individualistic "me" focus to a collective "we" awareness, prompted by the shared experience of the pandemic and its disproportionate impact on marginalized communities. They argue that this moment, despite its extremism, could serve as a centering force for politics by making disparities inescapable.

The discussion delves into the historical context of Greenwich, a place of immense wealth, and its traditional association with "country club Republicans" like Prescott Bush, who advocated for public investment even if it meant raising taxes. This contrasts sharply with the contemporary political landscape, where Trump, initially seen as an "outcast" by the town's elite, won the Republican primary in 2016. This shift is attributed to a fundamental change in cultural norms regarding wealth, responsibility, and community commitment. The hosts explore the transition from a discreet display of wealth (e.g., executives competing for the cheapest wristwatch) to ostentatious displays, symbolized by the rise of "Greenwich walls" – tall, mortared barriers reflecting a desire for seclusion and control, which Osnos metaphorically links to Trump's promise of a national wall.

Practical insights emerge from the conversation, highlighting the pandemic's potential as a catalyst for change. The hosts discuss how the crisis has forced a re-evaluation of societal values, potentially shattering "religious ideals" that deified the individual and the market. An encouraging example is cited in Greenwich itself, where a proposed cut to the public education budget in response to economic projections was met with robust community resistance, demonstrating a renewed commitment to collective well-being and public services. The role of arts and literature is also emphasized as crucial for fostering a sense of shared human experience, counteracting "social narcissism" and promoting empathy.

Broader implications include the correlation between economic outcomes and political despair, as seen in regions like West Virginia, where economic dislocation and the loss of upward trajectory fueled a shift from Democratic stronghold to Republican support. The conversation touches upon the "tyranny of meritocracy" and the "love of money" as drivers of concentrated wealth and power, leading to distrust in governance and a sense that financial sectors have become predatory rather than serving growth. The hosts express hope that the profound, visible, and severe consequences of the pandemic might finally disrupt these mindsets, forcing a re-examination of societal priorities and the boundaries of our moral universe, moving towards a more interdependent and responsible collective future.

Key Quotes

"the vulnerabilities of people in our society who don't have the the ways to fortify their livelihoods or to recede inside a kind of a cone of protection at a moment like this."
"we are having an active discussion about the boundaries of our call it our moral universe who who are we connected to who are we obligated to who are we responsible for and how do my actions impact your life."
"money is not the root of all evil but the love of money might well be."
"this is a as a metropolitan area that southern connecticut is the richest metropolitan area in the country in 2016 it was ahead of san francisco midland texas you name it."
"he was a fiscal conservative but he believed that you should spend money when you need to to invest in things like science education defense and as he said once famously on the floor of the senate he sort of beseeched his fellow senators he said we need to spend money even if it means raising taxes in order to make sure that we're fortifying the essential services that make this country what it is."
"donald trump would have been considered an outcast kind of unsavory in the greenwich that i lived in even though it was getting raw and you're talking about them coming around which is yeah how would i say that's ominous I think."
"instead of building these small farmers wells people started building these tall mortared six foot and they became known actually in the trade and the stone masons around the area started to call them the greenwich walls."
"the federal reserve cannot be in the business of picking winners or it will become publicly controversial and it will lose its independence."

Concepts

Themes

  • Wealth and social responsibility
  • Evolution of political identity
  • Cultural shifts in affluence
  • Economic inequality and its political consequences
  • Community versus individualism
  • The impact of crisis on societal values
  • The role of money in defining purpose

Related to:

Economics Insights

Market Implications

  • Increased financialization leading to rent-seeking behavior; moral hazard created by expectations of central bank bailouts; potential for market deification to lead to unchecked risk-taking and inequality.

Key Concepts Discussed

  • Noblesse oblige
  • Rockefeller Republicanism
  • Trumpism
  • Financialization
  • Rent-seeking
  • Moral hazard
  • Diseases of despair
  • Tyranny of meritocracy
  • Social narcissism
  • Fabric of mutuality

Data Cited

  • Greenwich/Southern Connecticut as the richest metropolitan area in 2016; historical CEO-worker pay ratios (14x vs. 280-350x); West Virginia's political shift from Democratic stronghold to Republican (e.g., 2000 election).

Practical Applications

  • Community activism against proposed education budget cuts in Greenwich as a hopeful sign; the pandemic as a potential 'centering moment' for politics to address inequality; the importance of arts and literature in fostering empathy and community.

Risks Mentioned

  • Increased despondency and distrust in governance due to unequal bailout outcomes; political extremism and wall-building mentality; social narcissism and focus on individual experience over collective good; the financial sector becoming a 'predator' rather than an 'efficient capital allocator'.

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